§ 9744. Property exempt from use tax
(a) The following uses of property are not subject to the compensating use tax imposed under this chapter:
(1) Property used by the purchaser in this State prior to June 1, 1969.
(2) Property purchased and used outside the State by the user while a nonresident of this State, except in the case of tangible personal property which the user, in the performance of a contract, incorporates into real property located in the State.
(3) Property or services to the extent that a retail sales or use tax was legally due and paid thereon, without any right to a refund or credit thereof, to any other state or jurisdiction within any other state but only when it is shown that the other state or jurisdiction allows a corresponding exemption with respect to the sale or use of tangible personal property or services upon which such a sales tax or compensating use tax was paid to this State; to the extent that the tax imposed by this chapter is at a higher rate than the rate of tax in the first taxing jurisdiction, this exemption shall be inapplicable and the tax imposed by section 9773 of this title shall apply to the extent of the difference in the rates.
(4) Property withdrawn from inventory for the purpose of donating such property to an entity described in subdivision 9743(1), (2), or (3) of this title.
(5) Building materials and supplies stored in this State for 180 days or less, if purchased by a contractor for the construction, reconstruction, alteration, remodeling, or repair of real property in a state which has no sales or use tax.
(b) A person while engaged in any manner in carrying on in this State any employment, trade, business, or profession, not entirely in interstate or foreign commerce, shall not be deemed a nonresident with respect to the use in this State of property in that employment, trade, business, or profession. (Added 1969, No. 144, § 1, eff. June 1, 1969; amended 1985, No. 88, § 2, eff. May 24, 1985; 1987, No. 251 (Adj. Sess.), § 4; 1995, No. 186 (Adj. Sess.), § 36, eff. May 22, 1996; 2001, No. 144 (Adj. Sess.), § 13, eff. June 21, 2002; 2013, No. 73, § 46, eff. June 5, 2013.)
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